Madison Park

In 2008, the City of Charlotte was approved for $5,431,777 from the U.S. Department of Housing and Urban Development (HUD) through the Neighborhood Stabilization Program. The City has committed $1 million of these funds for down payment assistance and property rehabilitation.  These funds are available to qualified buyers, in designated neighborhoods for a limited amount of time.

Program Update

The amount available for rehabilitation assistance has been increased from $10,000 to $15,000.

Program Features

·         Down payment assistance of up to $10,000 for qualified buyers in designated neighborhoods

·         Funding available of rehabilitation and repair of the purchased property, up to $15,000

·         Pre-purchase home buyer education

10 Easy Steps TO BUY a Home with NSP Down Payment & Rehabilitation Assistance

Step 1)  Complete homebuyer certification class from HUD approved housing counseling agency like Community Link (800) 977-1969. The agency must sign and date the NSP certification letter in addition to your homebuyer certification.  Both documents should be included in your loan documents sent to the City by your lender.

Step 2)  Contact an approved lender to see how much home you can afford.  If your lender is not already approved, a simple verification is all that is needed for approval.  Let your lender know that you will be using City funds for down payment and rehabilitation if you purchase an eligible foreclosed or abandoned home in an eligible neighborhood.

Step 3)  Find a home – identify a foreclosed or abandoned home in an eligible neighborhood that is less than $147,000.  Use the address search to see what neighborhood your home is in.  The "NSA" listed in your search result is the neighborhood your property is located in.  Check to make sure the same NSA is on the eligible neighborhood list.

Step 4)  Have your lender send us your loan information with the address of the home you would like to purchase.

Step 5)  The City will order an inspection of the home and send your real estate agent and your lender a list of mandatory repairs to bring the home up to code.

Step 6)  You should work with your real estate agent to find a qualified contractor to give you a quote for rehabilitating your new home.  Remember, all the mandatory items on the inspection list must be brought up to code. You may also include cosmetic items like – new carpet, paint, appliances, siding, etc.  But, the City will only allow up to $10,000 including the cost of labor for rehabilitation.

Step 7)  You must send the rehabilitation quote to the City for approval. Once the rehabilitation quote and all other documentation are approved the City will contact your lender to proceed with closing.

Step 8)  You or your representative must pick up your loan package which includes your rehabilitation and down payment funds, loan agreement, deed restrictions, deed of trust, promissory note, and attorney closing instructions.  Identification must be presented in order to pick up your loan package.

Step 9)  At closing your attorney will hold the rehabilitation funds in escrow to pay your contractor when he completes your rehabilitation.  If your contractor requires multiple draws that should be worked out with the attorney and City before closing.

Step 10)  Once your contractor has completed rehabilitation on your home you should contact the City. We will order a final inspection. If the inspection passes the City will instruct the closing attorney to release the rehabilitation funds from escrow directly to your contractor.

ALL DONE!

*Eligibility Requirements

·         Families with incomes that are 120% or less of the median income

·         Must complete a pre-purchase home-buyer education program

·         The home must be the family's primary residence and in a designated neighborhood

·         The purchaser must be a first time home-buyer (not owned any property in the last 3 years)

·         Maximum purchase price of the home is $147,000

 
http://www.charmeck.org/Departments/Neighborhood+Dev/Provide+Affordable+Housing/Neighborhood+Stabilization+Program.htm

In February of 2009, the U.S. Congress appropriated $1.92 billion for the Neighborhood Stabilization Program ("NSP") under the American Recovery and Reinvestment Act of 2009 ("Recovery Act"). The new national competitive round of funding is known as "NSP 2." The City of Charlotte will apply with the North Carolina Department of Commerce – Division of Community Assistance as part of a statewide NSP 2 application. Please click the link to view the draft application.

For additional information, contact Alvena Smith at 704-336-5615 Richard Payne at 704-336-2735 or Aisha Alexander at 704-336-2175.